Securekloud Technologies Ltd (was 8k Miles Software Ltd), Cloud Computing

The three people bullish on this thread, @coolbuddy @Funda_Buffett and @udayp all have posts ONLY on 8k Miles, and not any other company or thread! Also, they have all joined recently, in the last 3-4 months. Something to think about!
Disc: Never invested in 8k Miles (yet), but following it for learning

5 Likes

I also observed this. Though their is no proof , but something seems to be fishy (sixth sense).

Disc : Exited recently in loss

2 Likes

There is nothing to think about.I joined recently.I have been bearish since beginning of this year after meeting SV.I do not write about any other co though I follow quite a few cos.I have been following 8k since inception and has given me more than 70x return.You cannot impute motives to members.The forum is to exchange information and learn.

2 Likes

just watched the latest interview…very comfortable seeing it and really hopeful…the best news is that SV is coming with a plan for acquiring his shares back from the market…For once I trust the guy…
There has been a comment regarding myself being optimistic about the company…Yes…I m and i disclosed my shareholding in the company but somehow the moderator deleted my that particular post…I think the market is forgetting that he is among the top 35 partners of AWS…that no less an achievement…its a rare company which can easily compound its sales more than 20% annually for next 5 years if not more…I love this golden chance so i just visit this page and nowhere else and I have a right to do so.

#coolbuddy being bullish is your call.
But tell me he has borrowed against the shares which got sold.That money has been deployed elsewhere.
His co is borrowing Rs25 and Rs20 crs and given three collaterals including shares, property and personal guarantee.That is the level of insecurity of the lenders.
You heard him say raising debt and equity in US is very difficult for a unlisted, closely held company.His reputation in India is in tatters.
He may be asked by SEBI to gorge out the profits he made by selling the shares plus he may have a few restraining orders for the careless way the board has handled the affairs over the last 12 months.
The credit rating revision will take a few quarters.
Just a few upper circuits is not going to alter the fundamentals.The company is in a good line of business but has no resources to capitalise on it.Where is this confidence that he will do well arise from?Don’t Tell me it has fallen 85% and will see a correction!


Smells like Daytrading on 6th and 9th July

2 Likes

strangely no media has tried to contact the two brokers and even they havent bothered to tell their side of story…

2 Likes

There are close to 75 premier partners worldwide. The list also includes smaller India based cos. such as Minjar, Blazeclan and Cloud Kinetics, which were all founded way after 8K Miles (2011/12). Some of these cos. have also maintained their status for many years.

8K was a premier partner way back in 2013 (the inaugural list) and lost the status in the following year. They have made it back to the list now, which is good. But this is not something amazing - the list itself has expanded with AWS expanding in reach and partner base.

Ref:
2013 list

2014 list

1 Like

To speculate in the face of uncertainty is human…so is to doubt a hard unalterable fact. That every speculation or doubt has to result into a negative or bearish view is though not necessary. It can be positive or bullish too. This forum is meant to reflect the diversity that is very much expected. So to impute motive why some members are positive or bullish…seems out of place.

In my view, 8KMS is unquestionably growing…and its promoters are going thru’ the “caterpillar to pupa to butterfly” growth pangs. This man SV is facing the questions and by all accounts his responses seem reasonable. Further he is contending with regulatory (incl penal/police) provisions that are formidable for any professional. I ask forum members to not take this lightly. It’s not something one seeks when starting or running a business. Put yourself in his shoes…

That share price is being driven down everyday and it refuses to look up…despite clarifications and growth numbers almost certainly appear to be driven by a bearish cartel that is aggressively not letting sentiments turn positive. Certainly unfavorable company acts have contributed to it…but this no longer explains this sustained price downs.

Fundamentals are good…and most likely will get better. And finally share orice will refect these fundamentals…no question. Strengthening the company board with few high credential folks will do world of good. Risk on downside is low…it may be time to accumulate at one’s own comfortable pace.

With even bellwether stocks getting severely hammered in this market, this one with a lot of corporate governance issues and a management which is incompetent, if not outright fraudulent, is going to be a penny stock before long. Getting out on any rally if it materialises will save at least some money.Remaining invested in this type of company will spoil one’s sleep . There was more than a hint in this thread that all was not hunky-dory. Not invested, nor interested.

1 Like

I think we can summarize the reasons for the share price to slide from 1000 to 120…
1…the growth has slowed down considerably i.e. from almost doubling to 20%
2…the market conditions have worsened…
3…the cfo has sold out…the market takes it as an insider cashing out…
4…the cash balance has reduced from last financial year to 2018 march.
5…the delay in declaring audited results
6…the loan given to media company
7…the case filed by the previous auditor against the media company
8…now its look established that SV believes in buying companies constantly and thats perceived to be a risky game…
9…investors still dont understand the future of blockchain
10…huge amount of receivable always create suspicion as an outside investor.
11…25 lakhs shares stolen…thats shocking…
12…no dividend…
13…since cfo and stolen shares are doing the round,there is a huge increase in the supply of shares…it will take some time for the market to absorb…
14…increase in the total number of the shares pledged by SV
15…resignation of one or two directors with in one year of joining also creates some suspicion about the current environment in the company
I hope I have covered all negative points about the company…Now one must take all these points in mind before putting more money in the stock…

2 Likes

Let me help you with your thinking. I am invested in 8K miles since 2013. Cost wise it maybe less but value wise (when the price was around ₹700-800) constituted 80% of my entire portfolio. So definitely me commenting only on this company on this forum is my personal choice. Is there any compulsion to talk about multiple companies once you join the forum ? If yes , kindly forward me the rules of this blog. I will be happy to have a look at it. And yes I am still positive on this company despite of all the events that have taken place . But definitely I respect the views of @diffsoft @phreakv6. Those guys know what they talk and rarely speculate. They are negative on this stock but backed by strong analysis of data and public information . Any other question you want to ask ? I shall be happy to answer !

2 Likes

The fundamentals will get squeezed.This year he is supposed to do a turnover of over Rs900 crs.He requires W/C of 30-35% which is about Rs300 crs.Last year his profit was about Rs260 crs( am I right?).Even presuming all this was in cash and his cash flow of about Rs290 crs,he has just money for running day to day.Where is the cash for acquiring companies, building new software, writing off non productive assets etc.
He requires at least Rs250 crs over the next 2 years which I told him early this year and at present price it is about 50% dilution.Whether a investor brings in or he brings in, there is a price to be paid and that is this dilution.You may be AWS gold/ prime whatever, you need cash to execute and grow.This is the Crux of the problem.
The company has always believed in inorganic growth.There are issues with this in 8K which has also been questioned because of the accounting jugglery.
To be free of the past and resume growth in the face of regulatory obstacles will be a Herculean task.

1 Like

I have seen Red flags being raised about some companies well in advance on this forum.Those companies stocks tumbled in a short period and never recovered.In some of them, similar views and counter views were being expressed till the end game finally came.This is not a comment on 8 K miles but an advice to b careful.However I feel that the episode of shares transfer, sale etc appears a big red flag.
Disclaimer:not invested

2 Likes

The disclosure by 8K Miles with BSE under “Disclosures under SEBI (Prohibition of Insider Trading) Regulations, 2015” fills some gaps to the emerging story.

The disclosure is pasted below and sources from this link

Interestingly the value of the disposal of these 25.7 lakhs shown as Rs 40.50 crores, when even at the lowest trading price for the day, the value should have been Rs 66.80 crores. I suspect Rs 40.5 crores is the value of the ‘informal’ loan taken against these shares at a 40% margin, and at this price on 17 Sept a margin call that triggered this off-market sale.

But ironically, this now created a situation for the lender who was left holding these 25.7 lakh shares and had to recover the Rs 40.5 crores, with (a) share price rapidly falling, (b) scrip put into trade-to-trade, and, (c) thinning buyers. Consequently I guess these shares are crowding the sell-side en-masse, with the lender worried that if the share price falls below Rs 157, he will be out of money against the loan.

I suspect the lender is still stuck with a good number of shares waiting to be offloaded. That’s because since Sept 17, the total number of shares traded in BSE & NSE, until today is 25,79,829, and a good number of this will be from other sellers too. Remember this is a trade-to-trade scrip making selling ever more difficult. The total value of these shares is Rs 41.23 crores. This arithmetic tells us that the lender is still out of the money. In other words not only could the lender not offload the shares quick enough to recover the Rs 40.5 crores, he is now left with a good number of these shares that slips in price 5% every day worsening his losses. We will get to know more in the September shareholding pattern if he is left with 1% or 300,000 as of 30 Sept, which I suspect he does.

Which is probably why SV is making appearances on various channels trying to help recover share price and reduce his losses.

On a related note, if you carefully listen / watch the BloombergQuint interview SV is caught on multiple occasions making statements in contradiction to his earlier statements of facts. Both Niraj and Darshan have done a wonderful job making him squirm at one point when he told them - I don’t know what you want to establish.

1 Like

Unless I misunderstood, above comment doesn’t related with SV’s statements that he learnt of this 25.7 lacs sales in July…and that actual sales had happened in Q1/18-19. Is this be so, the closing price range in Q1 was approx Rs 695-490…hence were sold at much much higher prices. This date of 17 Sep is when he filed the police and sebi complaints…

Did I get @diffsoft wrong?

I don’t think the disclosed value in the latest is accurate. This is some random number SV has come up with to not make his investors jealous in my opinion.

I have highlighted the actual disposal entries. These add up to 26 lakh shares and a combined value of Rs.161.85 Cr which on an average works up to Rs.622.52 per share. Not bad uh?

What irks me the most is the SHP in June showing that retail holding had shrunk by more than half from 11.21% to 5.24% when in reality the retail holding at that point in time was probably in excess of 20% if reported accurately. My gut feel is it was probably already over 25%. Let’s not forget that Sandeep Tandon’s reported holdings of 6% as well are very much questionable. I think this was all done deliberately to not show signs of distribution.

If you want to take a detailed look at SHP, please check

https://phreakonomics.in/shareholding/index/8KMILES

2 Likes

Yeah likely, which means 8K Miles was fudging Shareholding Pattern for April and June quarter!!! Just wondering then why this new drama of someone cheating him of shares!

#diffsoft
This seems to be bigger conspiracy to release some information but not complete information.
There is a reference in the Secretarial report of March 31 of transfer of 16.50 lac shares from promoters.Somewhere at that time the shares got disposed.
That is why the price started falling from Rs750 levels. This has been confirmed by SV that he found shares missing in July.
The lender has recovered his money The present surge in sales to me appears to be by DSP/ Sandeep and others who all cannot justify retaining the shares when there is truckload of evidence of mismanagement and a rating agency report on what it thinks of the company.Investment committees cannot justify investment.
The shareholding pattern,the qtly results with Deloitte’s review report will throw newer evidence on the happenings.

This interview was tough and they grilled him but nothing convincing came out from him as expected plus he added some keywords. I am actually quite surprised that he took my name because it went viral instantly in investors circle, many people posted without giving credit including but not limited to Nilesh Shah and some of my friends forwarded it to me as well. Lastly; I would not have gone the distance without your article.